Santa Claus and presents
Santa Claus and presents

Christmas is just around the corner !!! It promises to be fun and exciting with so much love and warmth from family and friends. Gifts will be exchanged, several events and programs will be organized.

Santa Claus and presents
Santa Claus and presents

It’s very easy to overspend or rack up debts if you don’t watch your budget because you may be caught up in the euphoria.

Have a detailed plan – In order to avoid overspending and having debts at the beginning of the next year, just have a plan. Start planning how you want your Christmas to be.

If the plan is to travel, make advanced flight/bus reservations and book hotels many months before Christmas as prices are not as high when booking is made in advance. Buying tickets or booking hotels during Christmas only makes you spend more money than you need to. Stay within your budget also.

Many people tend to spend more money than they have. Sometimes they even go to the extent of borrowing to sustain themselves throughout the festive season. Only spend money that you have on things that you have planned and budgeted for.

2.Spend more time not money – Most often, we are tempted to believe that spending a lot of money on gifts for our loved ones or taking them out to expensive and luxurious places is the best way to make them happy during Christmas. Although it isn’t out of place to invest some appreciable amount of money into buying gifts for our loved ones occasionally, spending more time with them is usually more appreciated.

Spend a lot of time chatting, singing, laughing and bonding. After all, Christmas is a time to share love. A small family picnic may do, rather than spending too much money buying gifts, investing time in making a small gifts for friends and family helps in saving a lot of money.

3. Take advantage of discounts – Christmas is a time of giving. Individuals give each other presents and companies/manufacturers also give amazing discounts. Discounts come in many forms of different value. Some give discounts up to 50% off products and services .

This is a great time to buy. Electronic appliances, clothing, flight and hotel reservations and many other products and services are often discounted during the festive season. Buying discounted products or patronizing discounted services is a sure way of reducing cost during christmas.

4. Spend Cash at hand – More often than not, people tend to think they have a lot of money to spend when they do transactions online or pay for goods and services with credit cards etc.

The fact is, anytime they purchase an item or pay for a service remotely, they receive notification of the transaction which makes them realise there is still more to be spent. To avoid overspending, always try to pay for items during this season with cash. Using the philosophy “when it’s done, it’s done’’ might not be a bad way to cut costs.

When you go shopping with cash, you can only buy up to the cash you have at hand whereas if you go with credit and debit cards, you can buy more than you budgeted for. Self-control helps, but defenses are usually weak when the euphoria reaches fever pitch.

This will also help you avoid all the fees and interests that are charged to your card – and avoid the surprise of finding out that you actually spent more than you should when your credit statement comes in.

5. Attend more free events – Most event organizers put together shows and charge exorbitant fees all in the name of the festive period. In order to avoid spending too much, attend more free events and concerts. Most of your friends and family members organize barbecues and parties during Christmas.

You can have as much fun as at the paid concerts by actually attending these. You get food, drinks, bond with friends and have so much fun all for free.

There is life after Christmas. The new year will come with lots of expectations and financial responsibility. Do not spend too much at Christmas when you can actually spend less yet have just as much fun.

Enter into the New Year with no debts to pay and with a very good looking account balance.

Source- Bennet Otoo

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